Court orders remand for reevaluation of spillage and loss calculation in writ petition

The High Court allowed the writ petition, setting aside the Revisional Authority's order and remanding the matter for reevaluation. The court directed the Revisional Authority to calculate an average percentage for spillage and loss during repacking based on the petitioner's figures from earlier assessment years, within four weeks. No costs were mentioned in the judgment.

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Issues:
Interference with order by Revisional Authority regarding quantum of loss while handling and storing lubricating oil and grease.

Analysis:
The petitioner challenged an order passed by the Revisional Authority, who interfered with the order of the Commissioner of Central Excise (Appeals) regarding the quantum of loss occurring during the handling and storing of lubricating oil and grease. The Commissioner had allowed the petitioner to adopt a 0.21% figure for the loss due to spillage or repacking. However, the Revisional Authority set aside this order and directed the Commissioner to follow a circular issued by the C.B.E.C. in 1976. The court noted that the percentage of loss adopted in 1976 may not be equitable considering advancements in technology and facilities available in factories. The court found the order of remand by the Revisional Authority to be incorrect in this regard.

The High Court allowed the writ petition filed by the petitioner and set aside the impugned order dated 30-4-2004. The matter was remanded back to the Revisional Authority for reevaluation. The court instructed the Revisional Authority to calculate an average percentage for spillage and loss during repacking based on the figures adopted by the petitioner for the earlier three assessment years. This exercise was to be completed within four weeks from the date of receipt of the court's order, and a speaking order was to be passed accordingly. The court made no mention of costs in this judgment.

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